Lloyds Banking Group (LON:LLOY) has said that it will cut 450 mainly back office roles, Reuters has reported. The move will come with the bailed-out lender looking to trim costs and focus on its digital strategy.
Lloyds’ share price has been steady in London this morning, having added 0.13 percent to 61.75p, marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.34 percent higher at 7,653.00 points. The group’s shares have lost a little over eight percent over the past year, as compared with a near three-percent gain in the Footsie.
Lloyds to cut jobs
Reuters reported yesterday that Lloyds had said that it would cut 450 mainly back office roles in its latest round of job cuts. The lender, however, also said that it would create 255 new roles, meaning a net reduction of 195, as part of its £3-billion technology investment programme which the bank presented alongside its full-year results earlier this year.
“Today’s announcement involves making difficult decisions, and we are committed to working through these changes in a careful and sensitive way,” a Lloyds spokeswoman told the newswire. This week’s news comes after in April, it emerged that the group was set to eliminate 305 jobs primarily across its branch network.
HSBC trims valuation
In a separate development, HSBC lowered its price target on Lloyds from 72p to 70p yesterday, while retaining its ‘hold’ rating on the shares. Proactive Investors quoted the broker’s analyst Robin Down as commenting that the bailed-out lender was trading on a relatively high costs of capital (13.9 percent) compared to its peers.
According to MarketBeat, the FTSE 100 bank currently has a consensus ‘hold’ rating and an average price target of 75.35p.